July 22, 2019. Investors who focus on ‘income’ issues like us, know that positions are richly valued. It is almost impossible to find any bargains unless you buy new issues or issues going ex-dividend.
Last week we were looking at several current positions in the Core Portfolio that were going ex-dividend (the prices usually drop temporarily) and we wanted to ADD to the positions. But no luck. Buyers swoop in and start buying.
CAUTION: You should be extremely careful about buying positions right now. We are at the point where you typically see 5% pullbacks, which would provide buying opportunities. HOLD: Right now we are holding all positions and collecting dividends, buying ONLY if we see big bargains. We ARE looking at OXLCM which goes ex dividend tomorrow: this may be a buy.
FOR NEW READERS: We do NOT invest in anything unless they pay us a reasonable dividend anywhere from 4% to 13%. Facebook, Amazon, Netflix, the usual stocks you see on CNBC are NOT in the portfolio. The Core Portfolio is designed for retirees who need income, OR for younger investors who want to allocate a small portion of their monies to income issues.
Here is an interesting post with a link to the full article talking about current pricing for income issues.
WOW!! No Wonder We Can’t Find Bargains
We have a spreadsheet which we use–but it is not posted on the “preferred stock” page that is “$25 Preferreds At or Near New Highs” which is a listing of all preferred stocks and it compares current price to the 25 week high for the shares.
When I reset the formula to show all issues within 2% of a new high 250 issues show up. More than 1/2 the $25 preferred issues are within 2% (50 cents) of a new high–no wonder we search in vain for “bargains”.
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